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Price Performance (1-year)
Nisk Polymetallic Project (Quebec)
The Nisk property, covering 45.9 km2, is located in an established mining region near James Bay, Quebec.
Nisk is located in an active mining region. Excellent infrastructure in place, including access to water, and low-cost hydro power
PNPN has identified three primary zones of mineralization – the Nisk Main zone, the high-grade polymetallic Lion zone (5.5 km from the Nisk zone), and the recently discovered Tiger zone (700 m east of the Lion zone)
Lion Zone
Recent drilling has expanded the polymetallic Lion zone laterally, and along depth
The polymetallic Lion zone was discovered in early 2024. Approximately 40 drill holes have intersected polymetallic mineralization, including several ultra high-grade intercepts over long intervals
Based on the reported drill results, we estimate an impressive weighted average grade of 3.48% CuEq. PNPN is awaiting results from nine additional holes from its last winter drill program
We now estimate the Lion zone to be approximately 350 m long, 10–20 m wide (expanded from 5–6 m), and 700 m deep (up from 350 m), with the zone remaining open in multiple directions
Tiger Zone
Last year, PNPN tested an electromagnetic (EM) anomaly located 700 m east of the Lion zone. Discovery hole PN-24-094 intersected 9.9 m of 1.77% CuEq. Subsequently, four additional holes confirmed the polymetallic potential of this new zone.
All five holes intersected Lion-style mineralization at shallow depths (5-100 m below surface)
Based on the reported drill results, we estimate a weighted average grade of 1.73% CuEq, lower than the Lion Zone but at shallower depths
PNPN is planning a 60,000 m drill program at the Tiger and Lion zones to potentially extend mineralization along strike and at depth, prior to a maiden resource estimate, possibly by 2026.
Preliminary Speculative Estimate (FRC Estimate)
Based on our review of the recent drilling results and the projected dimensions of the Lion Zone, we believe the Lion zone could host 1.24 Blbs of high-grade CuEq, up 35% from our previous estimate of 0.92 Blbs. For conservatism, we are not assigning any estimate on the Tiger zone.
Nisk Main Zone
The Nisk Main zone hosts a high-grade nickel sulphide deposit encompassing open-pit, and underground resources
2023 Resource Estimate (Nisk Main)
PNPN has commenced a resource expansion drill program to evaluate the deposit’s continuity along strike and at depth.
In addition to high-grade nickel, the deposit hosts low-medium grade copper, and low-grade gold, silver, PGM, and cobalt
We believe there is significant resource expansion potential as the deposit remains open at depth. Several targets remain untested
Financials
Strong balance sheet. In Q1-2025, PNPN completed a $50M equity financing. In-the-money options and warrants can bring in $16M
FRC Valuation and Rating
We are valuing Nisk based on a potential 5,000 tpd operation, with an 80:20 copper-to-nickel sulfide split, up from our previous assumption of 4,000 tpd with a 50:50 split. Our revised DCF valuation on Nisk is $1.47/share (previously $1.09/share), and our fair value estimate on PNPN is $1.68/share (previously $1.17/share). Valuation increased primarly due to our higher estimates for both metal content, and annual throughput
Our valuation is highly sensitive to copper and nickel prices
We continue to refrain from a comparables valuation due to a lack of direct peers - specifically, high-grade polymetallic deposits with an advanced-stage nickel resource.
We are reiterating our BUY rating, and raising our fair value estimate from $1.17 to $1.68/share. Key upcoming catalysts include further drilling, and a potential maiden resource estimate in 2026. We believe our preliminary/speculative estimate will provide the market with early insight ahead of the maiden resource. As investors recognize the potential of the Lion and Tiger zones, we anticipate the stock will gradually approach our fair value.
With gold and copper trading at record highs, we anticipate an increase in M&A activity over the next 12 months, as larger companies target juniors to expand their portfolios.
Risks
We believe the company is exposed to the following key risks (not exhaustive):
